We often know the ending before a movie even begins, so why do we watch them? We watch to see the journey. The journey that started with a struggle or a problem is finally resolved as the prince and princess ride off into the sunset. So, why then do most investment pitches start with, “And my company is the next Apple or Facebook”? I mean, that’s the fairytale ending, isn’t it? That our startup is the next multibillion-dollar company?
When it comes to VC and entrepreneur relationships, you’ve probably heard grieving entrepreneurs who, after signing the dotted line, ended up quite unhappy with their fundraising nuptials. While there’s nothing wrong with venture capitalist’s, per se, many simply make the wrong decision. As an entrepreneur, it is essential to choose the right VC, because the right “marriage” can define the future success of your business and how happy you will be while running it.
As far as funding a startup is concerned, there are two fundamental ways to accomplish your goals — debt financing or equity financing. Each caters to the needs, and long-term objectives, of an entrepreneur and needless to say, both have pros and cons. This makes it imperative, on a small business owner’s part, to learn about each option before making a choice.
If venture capital is what you’re after, thankfully there are quite a few websites that can help you plan your VC pitch strategy, connect with potential investors and (best of all) save you time and money navigating the venture capital scene.
Here are five useful sites that provide practical advise for raising venture capital that you should consider bookmarking.
Does every startup need VC funding – no. But depending on your end goal, it’s a viable path. “Just look at Twitter … And look at all the other micro-blogging companies out there. No offense to Twitter, but what’s the difference between Twitter and all these other micro-blogs? About $20 million in venture capital.” So, if you’re thinking of securing start-up venture capital funding for your seed stage, early stage or growth company it’s important to start with the basics.
Much of the early-stage startup world runs on a stereotypical formula fueled by venture capital or angel investors. It begins with a light bulb idea followed by running toward the Peter Thiel’s of the world to make the reality of an entrepreneurial endeavor possible. While VC funding has its place and positive attributes for particular business models, I believe the frequency of its use is unnecessary, in large part because ideas are receiving investment too early. Simply put, without proper evaluation they won’t succeed.
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